Argenx stock target raised to $701 by JMP on VYVGART strength

Published 28/02/2025, 10:56
Argenx stock target raised to $701 by JMP on VYVGART strength

On Friday, JMP Securities analyst Jason Butler raised the price target for argenx SE (NASDAQ: ARGX) shares, increasing it slightly from $696.00 to $701.00. Butler maintained a Market Outperform rating on the stock. The company, currently valued at $37.4 billion, has demonstrated impressive revenue growth of 77.5% over the last twelve months. The adjustment follows argenx’s announcement of their fourth quarter 2024 financial results, which surpassed both JMP Securities and consensus estimates.

The company’s VYVGART franchise, particularly its launch in Chronic Inflammatory Demyelinating Polyneuropathy (CIDP), has continued to perform strongly. Butler anticipates that the upcoming approval of the pre-filled syringe version of VYVGART in April will provide an additional boost to the drug’s commercial success. According to InvestingPro, argenx maintains impressive gross profit margins of 89.9%, reflecting strong operational efficiency.

Butler’s optimism is also rooted in the company’s overall commercial strength, which has led to an increase in U.S. VYVGART projections. This commercial vigor is a key factor in the revised price target. Moreover, argenx has shown proficiency in advancing its broader pipeline of products. InvestingPro analysis reveals 12 additional key insights about argenx’s financial health, which has received a "GREAT" overall rating.

The company concluded the year with a substantial cash reserve of approximately $3.5 billion. Looking ahead, argenx has provided guidance for its 2025 operating expenses, which are expected to be around $2.5 billion. With these figures in mind, JMP Securities forecasts that argenx will generate significant free cash flow in the future. The company’s strong financial position is reflected in its current ratio of 7.29, indicating robust liquidity to meet short-term obligations.

In other recent news, argenx SE has reported strong financial performance and received positive evaluations from multiple analysts. The company disclosed preliminary fourth-quarter revenues of $737 million for Vyvgart, surpassing both analyst and consensus estimates. Projections for the full year 2024 anticipate revenues to rise by 78% year-over-year to $2.2 billion. Analysts have responded favorably, with TD Cowen raising its price target to $761 and maintaining a Buy rating, citing the robust sales of Vyvgart and future regulatory milestones. H.C. Wainwright also increased its price target to $717, highlighting the success probabilities of argenx’s pipeline assets.

Truist Securities upgraded its rating to Buy and raised the price target to $700, emphasizing argenx’s potential to exceed its long-term strategic goals. Jefferies echoed this sentiment, adjusting its price target to $772, following the impressive global sales results for Vyvgart and Vyvgart Hytrulo. Piper Sandler also expressed a positive outlook, increasing the price target to $725, based on revised estimates for Vyvgart’s revenue in gMG and CIDP treatments. These recent developments and analyst endorsements highlight argenx’s promising financial trajectory and strong market positioning.

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